About a-team Marketing Services
The knowledge platform for the financial technology industry

A-Team Insight Blogs

‘Tick To Trade’ Emerges As Latency Solution

Subscribe to our newsletter

The latency solution developed jointly by Solarflare and LDA Technologies has delivered a lower latency by figuring out how to push packets of information through their system faster and more directly, explains Ahmet Houssein, vice president of marketing at Solarflare.

Using the “tick-to-trade” method of picking up packets sent through a user datagram protocol (UDP), the combination of Solarflare’s network interface controller (NIC) and LDA’s transmission control protocol (TCP) hardware ships a stock tick through to algorithms in a high-frequency trader’s systems. The trader’s algorithm can then execute a trade based on that tick or stock value.

Solarflare and LDA’s latency solution is aimed at high-frequency traders.

“The faster you can make that trade, the faster and more accurate and effective you can be with that trade,” says Houssein. Solarflare and LDA have reduced the time for a transmission of such stock tick information to 120 nanoseconds.

In effect, capabilities or functions normally only in software are executed using hardware in the arrangement between Solarflare and LDA, particularly a field programmable gate array (FPGA). “You can program for the algorithm you want to execute, including extensions,” says Houssein. “Our relationship with LDA provides a capability for those algorithmic applications that can be extended to make decisions and make a trade faster. It solves the piece in the middle of the algorithm — and how fast the algorithm can respond to the tick or the trade.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: From Monolith to Modular: Architecting Equity Trading Platforms for 24/5 and Beyond

Date: 14 October 2026 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Equities markets are entering a more distributed, always-on phase. Liquidity is fragmenting across venues and geographies, trading hours are extending toward 24/5 and beyond, and market data volumes, investor expectations and competitive pressure are all rising at once. Many...

BLOG

Exchange Technology 2.0: Future-Proofing Exchange Architecture

By Ian Salmon, Head of Product Marketing, Adaptive. Exchange technology is back under strategic review, but not in the narrow sense of another performance upgrade cycle. Across the market, venue operators are reassessing the foundations of their platforms because the environment around them is becoming more demanding, more diverse and less predictable. For some, that...

EVENT

TradingTech Summit New York

Our TradingTech Summit in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Regulatory Data Handbook 2019/2020 – Seventh Edition

Welcome to A-Team Group’s best read handbook, the Regulatory Data Handbook, which is now in its seventh edition and continues to grow in terms of the number of regulations covered, the detail of each regulation and the impact that all the rules and regulations will have on data and data management at your institution. This...